The Japanese currency weakened further against the dollar in Tokyo on Thursday, as many investors shared the view that the Bank of Japan is in no rush to raise interest rates.
The yen briefly fell to a one-month low at the 147 level. It started tumbling on Wednesday after Japan’s new Prime Minister Ishiba Shigeru said he personally thinks the country does not need an additional rate hike at this time.
His remarks came after he met with BOJ Governor Ueda Kazuo. After the meeting, Ishiba said he did not think the current economic conditions in Japan require a further rate increase.
Ishiba told reporters that the government is not in a position to instruct the central bank, but that he personally thinks Japan is not in an environment for another rate rise.
Shares in Tokyo were bought on the weaker yen. The benchmark Nikkei 225 ended up 1.97 percent on Thursday at 38,552.
The index rose more than 1,000 points at one stage, but it trimmed its gains as some investors locked in profits after the yen’s depreciation eased somewhat.
Some traders were cautious about the conflict in the Middle East spreading, as well as US job statistics due out on Friday.